Compensation of Terminated Employees

When you lose your job even without cause, that is, without a good reason, such as because of a personal dispute you may have with your employer, a downsizing by your employer, etc., it is known as an illegal or wrongful termination. It is crucial for an employee to be aware of the rules in India that regulate such unfair or illegal terminations because such instances of abrupt termination can be a devastating financial and emotional blow.

Several industries let go of a sizable number of workers. Such a termination implies a reputational risk for the employer in the market. These issues are typically covered by labour and industrial laws, which were developed to address a variety of labour-related difficulties, from protecting workers’ rights to regulating situations like closure, retrenchment, layoffs, etc. in the establishment.

Rights of an employee after a wrongful termination

1. Right to receive a termination letter of employment: Both federal and state laws take precedence over contract clauses, thus employers must abide by them when firing employees. The Delhi Shops and Establishments Act of 1954, which governs employment in Delhi, stipulates that if an employee leaves a company after working there for more than three months, they must give him at least 30 days’ notice or pay him in lieu of notice. If the employee’s termination is due to misconduct, the employer is not required to provide notice to them. The employee has a chance to rationally defend himself in this situation.
2. Right to be heard: The employee has the right to a hearing before his employment is terminated. He must be given the chance to defend his stance and provide justification for why he shouldn’t be fired or sacked. Additionally, an employee must be given the rationale behind his discharge or dismissal when it occurs.

Natural justice’s guiding principles are likewise compatible with the demand of the right to be heard. The harmed party has the right to be heard under this principle. Employees have the ability to ensure that the termination is not excessive in light of the offense by exercising their right to be heard.

3. Right to File a Lawsuit Because of an Unlawful or Illegal Termination: the employer must provide a legitimate and valid reason for terminating an employee’s employment. It must be in accordance with the legal justifications outlined in the applicable statutes or employment agreements. The employee can file a lawsuit against the employer on the grounds of illegal or unlawful termination of employment if it is determined that there was no just cause for the termination and that it was based on illegal grounds, such as discrimination on the basis of religion, caste, gender, age, disability, pregnancy, etc.
4. Right to a Severance Payment: The employee has rights to certain payments that he is entitled to receive at the moment of termination of the employment contract with the employer. Severance pay is the name for such a payment. This covers the following payments:

• salary payment in lieu of notice;
• a day’s worth of unpaid wages;
• cancellation of unused paid time off;
• payment of a gratuity to an employee who has worked for more than five years in accordance with the provisions of the 1972 Gratuity Act;
• In the event that an employee who has worked for more than a year is laid off, 50 percent of their earnings will be paid for up to 45 days;

5. Right to Request an Investigation for wrongful termination: In the event of an inappropriate and unjust firing, an employee has the right to undertake an investigation. To determine whether or not the employee has to be held accountable, the facts and circumstances must be thoroughly examined and fairly evaluated.

Employing a labour lawyer in Delhi is essential because they are knowledgeable about the rules and processes involved in cases of unjust or illegal termination. Lead India’s skilled attorney can draught your legal notice and suit and even file it in the appropriate court. A labour lawyer, who is knowledgeable about employment and labour laws, can help you comprehend your alternatives in these circumstances and can also help you with the necessary steps to settle your issue involving wrongful termination and the collection of unpaid wages.